ASCENT RESOURCES REPORTS THIRD QUARTER 2024 OPERATING AND FINANCIAL RESULTS

News provided by

Ascent Resources Utica Holdings, LLC

Nov 06, 2024, 16:00 ET

Third Quarter Highlights:

Net production averaged 2,075 mmcfe per day, with liquids accounting for nearly 41 thousand barrels per day
Realized pre-hedge natural gas equivalent price of $2.29 per mcfe, a $0.13 per mcfe premium to NYMEX pricing
Cash Flows from Operations and Adjusted EBITDAX⁽¹⁾ of $260 million and $327 million, respectively
Generated $56 million of Adjusted Free Cash Flow⁽¹⁾
Subsequent to quarter end, the Company extended the maturity of its revolving credit facility by two years to June 2029 and issued $600 million of new 6.625% Senior Notes due 2032 with proceeds used to refinance its existing 7.000% Senior Notes due 2026

⁽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.

OKLAHOMA CITY, Nov. 6, 2024 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent" or the "Company") today reported its third quarter 2024 operating and financial results. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, November 7, 2024. For more detailed information on Ascent, please refer to our financials, the latest investor presentation and additional information located on our website at https://www.ascentresources.com/investors.

Commenting on the third quarter results, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "I am pleased to announce another strong quarter of financial and operational execution. We maintained the momentum gained in the first half of the year by continuing to balance our development between natural gas and liquids while reducing operating costs throughout the business. This approach, combined with our continuous focus on efficiency gains in the field, has improved margins and ultimately sets us on the course to generating nearly $500 million of free cash flow in a down market."

Fisher continued, "As we close out the year, fourth quarter activity will once again be predominantly focused on liquids. Our financially disciplined approach to managing the business, combined with our industry leading hedge position, puts us in an enviable position to grow free cash flow, reduce debt and return capital to our unitholders."

Third Quarter 2024 Financial Results

Third quarter 2024 net production averaged 2,075 mmcfe per day, consisting of 1,829 mmcf per day of natural gas, 12,011 bbls per day of oil and 28,891 bbls per day of natural gas liquids ("NGL").

Third quarter 2024 price realizations, including the impact of settled commodity derivatives, were $3.29 per mcfe. Excluding the impact of settled commodity derivatives, price realizations were $2.29 per mcfe in the third quarter of 2024.

For the third quarter of 2024, Ascent reported Net Income of $92 million, Adjusted Net Income of $97 million, Adjusted EBITDAX of $327 million, along with Cash Flows from Operations of $260 million and Adjusted Free Cash Flow of $56 million. Ascent incurred $233 million of total capital expenditures in the third quarter of 2024 consisting of $197 million of D&C costs, $27 million of land and leasehold costs, and $9 million of capitalized interest.

Year-to-Date 2024 Financial Results

Net production for the nine months ended September 30, 2024 averaged 2,160 mmcfe per day, consisting of 1,911 mmcf per day of natural gas, 11,208 bbls per day of oil and 30,296 bbls per day of NGLs.

Price realizations, including the impact of settled commodity derivatives, were $3.41 per mcfe for the nine months ended September 30, 2024. Excluding the impact of settled commodity derivatives, price realizations were $2.36 per mcfe for the period.

For the nine months ended September 30, 2024, Ascent reported Net Income of $80 million, Adjusted Net Income of $411 million and Adjusted EBITDAX of $1.1 billion, along with Cash Flows from Operations of $839 million and Adjusted Free Cash Flow of $331 million. Ascent incurred a total of $658 million of capital expenditures during the nine months ended September 30, 2024 consisting of $534 million of D&C costs, $100 million of land and leasehold costs, and $24 million of capitalized interest.

Balance Sheet and Liquidity

As of September 30, 2024, Ascent had total debt of approximately $2.4 billion, with $625 million of borrowings and $102 million of letters of credit issued under the credit facility. Liquidity as of September 30, 2024 was approximately $1.3 billion, comprised of $1.3 billion of available borrowing capacity under the credit facility and $5 million of cash on hand. The Company's leverage ratio at the end of the quarter was 1.7x based on a LTM Adjusted EBITDAX basis.

After quarter end, the Company completed several transactions that enhanced its balanced sheet and improved its credit profile. In early October, Ascent extended the maturity of its revolving credit facility by two years from June 2027 to June 2029. Concurrent with the extension, the Company also reaffirmed the borrowing base and elected commitment amounts under the credit facility at $3.0 billion and $2.0 billion, respectively. Ascent also issued $600 million of new 6.625% senior unsecured notes due 2032 with proceeds used to refinance its existing 7.000% senior unsecured notes due 2026.

Operational Update

During the third quarter of 2024, the Company spud 14 operated wells, hydraulically fractured 15 wells, and turned-in-line 15 wells with an average lateral length of 13,745 feet. As of September 30, 2024, Ascent had 904 gross operated producing Utica wells.

Hedging Update

Ascent has significant hedges in place to reduce exposure to the volatility in commodity prices, as well as to protect its expected operating cash flow. As of September 30, 2024, Ascent had hedged 1,473,000 mmbtu per day of natural gas production for the remainder of 2024 at an average downside price of $3.50 per mmbtu, and 1,450,000 mmbtu per day in 2025 at an average downside price of $3.80 per mmbtu. Additionally, Ascent has hedged 10,000 bbls per day of crude oil production at an average price of $75.39 per bbl for the remainder of 2024, and 7,000 bbls per day in 2025 at an average price of $70.96. Subsequent to quarter end, the Company added additional oil hedges in 2025, increasing its hedge position to a total of 11,000 bbls per day at an average price of $70.36. Ascent also has a significant portion of its natural gas basis position hedged in 2024 and 2025 along with additional natural gas hedges in place through 2027. Please reference the financial statements for additional detail on Ascent's hedge position.

About Ascent Resources

Ascent is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, 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 cleaner burning, affordable energy to our country and the world, while reducing environmental impacts.

Contact:
Chris Benton
Vice President – Finance and Investor Relations
405-252-7850
[email protected]

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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Revenues:
Natural gas	$ 300,736	$ 388,727	$ 974,999	$ 1,334,008
Oil	74,396	61,336	212,100	188,495
NGL	61,649	52,685	212,345	136,062
Commodity derivative gain	175,725	69,253	315,902	1,339,884
Total Revenues	612,506	572,001	1,715,346	2,998,449
Operating Expenses:
Lease operating expenses	26,202	31,252	83,268	95,219
Gathering, processing and transportation expenses	248,984	253,479	766,695	721,563
Taxes other than income	10,888	11,784	33,412	35,918
Exploration expenses	4,122	1,862	13,478	6,654
General and administrative expenses	21,568	17,852	80,790	52,824
Depreciation, depletion and amortization	181,049	186,486	554,989	545,202
Total Operating Expenses	492,813	502,715	1,532,632	1,457,380
Income from Operations	119,693	69,286	182,714	1,541,069
Other Income (Expense):
Interest expense, net	(48,607)	(50,043)	(147,985)	(153,196)
Change in fair value of contingent payment right	20,291	(3,760)	17,200	(1,919)
Losses on purchases or exchanges of debt	—	—	—	(26,900)
Other income	1,021	1,172	28,148	12,083
Total Other Expense	(27,295)	(52,631)	(102,637)	(169,932)
Net Income	$ 92,398	$ 16,655	$ 80,077	$ 1,371,137

ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	September 30,	December 31,
($ in thousands)	2024	2023

Current Assets:
Cash and cash equivalents	$ 4,947	$ 6,718
Accounts receivable – natural gas, oil and NGL sales	187,150	266,906
Accounts receivable – joint interest and other	89,341	38,540
Short-term derivative assets	294,597	438,041
Other current assets	7,119	10,620
Total Current Assets	583,154	760,825
Property and Equipment:
Natural gas and oil properties, based on successful efforts accounting	12,212,893	11,565,453
Other property and equipment	43,681	42,542
Less: accumulated depreciation, depletion and amortization	(5,172,644)	(4,619,852)
Property and Equipment, net	7,083,930	6,988,143
Other Assets:
Long-term derivative assets	113,826	288,396
Other long-term assets	58,650	68,486
Total Assets	$ 7,839,560	$ 8,105,850

Current Liabilities:
Accounts payable	$ 79,696	$ 76,333
Accrued interest	45,618	44,665
Short-term derivative liabilities	3,180	13,157
Other current liabilities	502,801	551,894
Total Current Liabilities	631,295	686,049
Long-Term Liabilities:
Long-term debt, net	2,407,156	2,533,873
Long-term derivative liabilities	129	—
Other long-term liabilities	109,371	124,565
Total Long-Term Liabilities	2,516,656	2,658,438
Member's Equity	4,691,609	4,761,363
Total Liabilities and Member's Equity	$ 7,839,560	$ 8,105,850

ASCENT RESOURCES UTICA HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Cash Flows from Operating Activities:
Net income	$ 92,398	$ 16,655	$ 80,077	$ 1,371,137
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	181,049	186,486	554,989	545,202
Gain on commodity derivatives	(175,725)	(69,253)	(315,902)	(1,339,884)
Settlements received for commodity derivatives	148,964	104,269	484,234	164,380
Impairment of unproved natural gas and oil properties	2,679	977	10,789	4,791
Non-cash interest expense	6,970	6,606	18,655	15,854
Long-term incentive compensation	5,646	999	25,912	2,689
Change in fair value of contingent payment right	(20,291)	3,760	(17,200)	1,919
Losses on purchases or exchanges of debt	—	—	—	26,038
Other	35	95	55	(1,249)
Changes in operating assets and liabilities	18,126	(21,877)	(2,298)	93,265
Net Cash Provided by Operating Activities	259,851	228,717	839,311	884,142
Cash Flows from Investing Activities:
Natural gas and oil capital expenditures	(210,997)	(259,516)	(645,387)	(789,795)
Additions to other property and equipment	(329)	(323)	(1,174)	(2,151)
Net Cash Used in Investing Activities	(211,326)	(259,839)	(646,561)	(791,946)
Cash Flows from Financing Activities:
Proceeds from credit facility borrowings	365,000	400,000	1,215,000	1,820,000
Repayment of credit facility borrowings	(395,000)	(360,000)	(1,355,000)	(1,445,000)
Proceeds from issuance of long-term debt	—	—	—	210,000
Repayment of long-term debt	—	—	—	(549,822)
Cash paid for debt issuance and amendment costs	—	—	—	(11,219)
Cash paid for debt prepayment costs	—	—	—	(27,491)
Cash received (paid) for settlements of commodity derivatives	38,119	—	122,724	(53,530)
Cash paid to Parent for equity distributions	(56,238)	(12,503)	(168,702)	(30,359)
Other	(1,021)	(375)	(8,543)	(4,254)
Net Cash Provided by (Used in) Financing Activities	(49,140)	27,122	(194,521)	(91,675)
Net Increase (Decrease) in Cash and Cash Equivalents	(615)	(4,000)	(1,771)	521
Cash and Cash Equivalents, Beginning of Period	5,562	8,415	6,718	3,894
Cash and Cash Equivalents, End of Period	$ 4,947	$ 4,415	$ 4,947	$ 4,415

ASCENT RESOURCES UTICA HOLDINGS, LLC SUPPLEMENTAL TABLES NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023

Net Production Volumes:
Natural gas (mmcf)	168,300	181,873	523,509	539,011
Oil (mbbls)	1,105	838	3,071	2,744
NGL (mbbls)	2,658	2,044	8,301	5,202
Natural Gas Equivalents (mmcfe)	190,881	199,163	591,739	586,687

Average Daily Net Production Volumes:
Natural gas (mmcf/d)	1,829	1,977	1,911	1,974
Oil (mbbls/d)	12	9	11	10
NGL (mbbls/d)	29	22	30	19
Natural Gas Equivalents (mmcfe/d)	2,075	2,165	2,160	2,149
% Natural Gas	88 %	91 %	88 %	92 %
% Liquids	12 %	9 %	12 %	8 %

Average Sales Prices:
Natural gas ($/mcf)	$ 1.79	$ 2.14	$ 1.86	$ 2.47
Oil ($/bbl)	$ 67.33	$ 73.23	$ 69.07	$ 68.69
NGL ($/bbl)	$ 23.19	$ 25.78	$ 25.58	$ 26.16

Natural Gas Equivalents ($/mcfe)	$ 2.29	$ 2.52	$ 2.36	$ 2.83
Settlements of commodity derivatives ($/mcfe)	1.00	0.52	1.05	0.28
Average sales price, after effects of settled derivatives ($/mcfe)	$ 3.29	$ 3.04	$ 3.41	$ 3.11

CAPITAL EXPENDITURES INCURRED (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Capital Expenditures Incurred:
Drilling and completion costs incurred	$ 197,486	$ 206,088	$ 534,385	$ 666,441
Land and leasehold costs incurred	27,270	36,176	99,554	89,976
Capitalized interest incurred	8,697	8,377	24,225	27,985
Total Capital Expenditures Incurred	$ 233,453	$ 250,641	$ 658,164	$ 784,402

ASCENT RESOURCES UTICA HOLDINGS, LLC
NON-GAAP FINANCIAL MEASURES

Ascent uses certain non-GAAP measures as a supplement to its financial results prepared in accordance with generally accepted accounting principles (GAAP). These non-GAAP measures include Adjusted Net Income, Adjusted EBITDAX, Last Twelve Months (LTM) Adjusted EBITDAX, Net Debt and Adjusted Free Cash Flow. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Ascent's management team believes these non-GAAP measures are useful to an investor in evaluating Ascent's financial performance because (a) management uses these financial measures to evaluate operating performance, in presentations to its Board of Managers and as a basis for strategic planning and forecasting, (b) these financial measures are more comparable to estimates used by analysts, and (c) items excluded are one-time items, non-cash items or items whose timing or amount cannot be reasonably estimated.

Ascent believes these non-GAAP measures provide meaningful information to its investors and lenders; however, they should not be used as a substitute for measures of performance that are calculated in accordance with GAAP. These non-GAAP measures, as used and defined by Ascent below, may not be comparable to similarly titled measures employed by other companies.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) before the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, unrealized (gain) loss on interest rate derivatives, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt, impairment of unproved natural gas and oil properties and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Net Income is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.

Adjusted EBITDAX and LTM Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before exploration expenses, depreciation, depletion and amortization expense, interest expense (net), the revenue impact of changes in the fair value of commodity derivative instruments prior to settlement, change in fair value of contingent payment right, long-term incentive compensation, (gains) losses on purchases or exchanges of debt and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted EBITDAX is a supplemental measure of operating performance monitored by management that is not defined under GAAP and does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP.

Net Debt: Net Debt is defined 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 our cash and cash equivalents on hand. Net Debt does not represent, and should not be considered as, an alternative to total debt, as determined by GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities adjusted for changes in operating assets and liabilities, drilling and completion costs incurred, land and leasehold costs incurred, capitalized interest incurred, financing commodity derivative settlements, and certain items management believes affect the comparability of results or that are not indicative of trends in the ongoing business. Adjusted Free Cash Flow is an indicator of a company's ability to generate funding to maintain or expand its asset base, make equity distributions and repurchase or extinguish debt. Adjusted Free Cash Flow is a supplemental measure of liquidity monitored by management that is not defined under GAAP and that does not represent, and should not be considered as, an alternative to net cash provided by (used in) operating activities, as determined by GAAP.

RECONCILIATION OF ADJUSTED NET INCOME (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Net Income (GAAP)	$ 92,398	$ 16,655	$ 80,077	$ 1,371,137
Adjustments to reconcile net income to Adjusted Net Income:
Gain on commodity derivatives	(175,725)	(69,253)	(315,902)	(1,339,884)
Settlements received for commodity derivatives	191,305	104,269	622,471	164,380
Unrealized loss on interest rate derivatives	1,022	1,366	1,598	361
Change in fair value of contingent payment right	(20,291)	3,760	(17,200)	1,919
Long-term incentive compensation^(a)	5,646	999	25,912	2,689
Losses on purchases or exchanges of debt	—	—	—	26,900
Impairment of unproved natural gas and oil properties	2,679	977	10,789	4,791
Legal settlements, loss contingencies and other	18	—	3,534	(1,477)
Adjusted Net Income (Non-GAAP)	$ 97,052	$ 58,773	$ 411,279	$ 230,816

RECONCILIATION OF ADJUSTED EBITDAX (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Net Income (GAAP)	$ 92,398	$ 16,655	$ 80,077	$ 1,371,137
Adjustments to reconcile net income to Adjusted EBITDAX:
Exploration expenses	4,122	1,862	13,478	6,654
Depreciation, depletion and amortization	181,049	186,486	554,989	545,202
Interest expense, net	48,607	50,043	147,985	153,196
Gain on commodity derivatives	(175,725)	(69,253)	(315,902)	(1,339,884)
Settlements received for commodity derivatives	191,305	104,269	622,471	164,380
Change in fair value of contingent payment right	(20,291)	3,760	(17,200)	1,919
Long-term incentive compensation^(a)	5,646	999	25,912	2,689
Losses on purchases or exchanges of debt	—	—	—	26,900
Legal settlements, loss contingencies and other	18	—	3,534	(1,477)
Adjusted EBITDAX (Non-GAAP)	$ 327,129	$ 294,821	$ 1,115,344	$ 930,716


^(a)	The expense associated with the Long-Term Incentive Plan Cash Award of $3.0 million and $14.3 million for the three and nine months ended September 30, 2024, respectively, is included in these amounts. Ascent did not recognize any expense associated with the Cash Award in 2023.

RECONCILIATION OF LTM ADJUSTED EBITDAX (Unaudited)

	Three Months Ended				Twelve Months Ended
	September 30,	June 30,	March 31,	December 31,	September 30,
($ in thousands)	2024	2024	2024	2023	2024

Net Income (Loss) (GAAP)	$ 92,398	$ (98,046)	$ 85,725	$ 757,202	$ 837,279
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	4,122	3,335	6,021	5,971	19,449
Depreciation, depletion and amortization	181,049	186,940	187,000	178,749	733,738
Interest expense, net	48,607	49,166	50,212	52,714	200,699
Gain on commodity derivatives	(175,725)	(23,918)	(116,259)	(758,301)	(1,074,203)
Settlements received for commodity derivatives	191,305	204,604	226,562	58,169	680,640
Change in fair value of contingent payment right	(20,291)	(605)	3,696	651	(16,549)
Long-term incentive compensation^(a)	5,646	10,952	9,314	1,006	26,918
Legal settlements, loss contingencies and other	18	244	3,272	20,000	23,534
Adjusted EBITDAX (Non-GAAP)	$ 327,129	$ 332,672	$ 455,543	$ 316,161	$ 1,431,505

	Three Months Ended				Twelve Months Ended
	September 30,	June 30,	March 31,	December 31,	September 30,
($ in thousands)	2023	2023	2023	2022	2023

Net Income (GAAP)	$ 16,655	$ 250,036	$ 1,104,446	$ 1,600,999	$ 2,972,136
Adjustments to reconcile net income to Adjusted EBITDAX:
Exploration expenses	1,862	4,185	607	3,353	10,007
Depreciation, depletion and amortization	186,486	175,677	183,039	181,519	726,721
Interest expense, net	50,043	47,818	55,335	57,426	210,622
Gain on commodity derivatives	(69,253)	(348,982)	(921,649)	(993,155)	(2,333,039)
Settlements received (paid) for commodity derivatives	104,269	126,929	(66,818)	(473,217)	(308,837)
Change in fair value of contingent payment right	3,760	2,039	(3,880)	1,955	3,874
Losses on purchases or exchanges of debt	—	26,900	—	—	26,900
Long-term incentive compensation^(a)	999	859	831	8,780	11,469
Legal settlements, loss contingencies and other	—	—	(1,477)	(59)	(1,536)
Adjusted EBITDAX (Non-GAAP)	$ 294,821	$ 285,461	$ 350,434	$ 387,601	$ 1,318,317


^(a)	The expense associated with the Long-Term Incentive Plan Cash Award of $3.0 million, $6.5 million, $4.8 million and $6.5 million for the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2022, respectively, is included in these amounts. Ascent did not recognize any expense associated with the Cash Award in 2023.

RECONCILIATION OF NET DEBT & NET DEBT TO LTM ADJUSTED EBITDAX (Unaudited)

	September 30,
($ in thousands)	2024	2023

Net Debt:
Total debt	$ 2,407,156	$ 2,509,692
Less: cash and cash equivalents	4,947	4,415
Net Debt	$ 2,402,209	$ 2,505,277

Net Debt to LTM Adjusted EBITDAX:
Net Debt	$ 2,402,209	$ 2,505,277
LTM Adjusted EBITDAX (Non-GAAP)	$ 1,431,505	$ 1,318,317
Net Debt to LTM Adjusted EBITDAX	1.7 x	1.9 x

RECONCILIATION OF ADJUSTED FREE CASH FLOW (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
($ in thousands)	2024	2023	2024	2023

Net Cash Provided by Operating Activities (GAAP)	$ 259,851	$ 228,717	$ 839,311	$ 884,142
Adjustments to reconcile Net Cash Provided by Operating Activities to Adjusted Free Cash Flow:
Changes in operating assets and liabilities	(18,126)	21,877	2,298	(93,265)
Drilling and completion costs incurred	(197,486)	(206,088)	(534,385)	(666,441)
Land and leasehold costs incurred	(27,270)	(36,176)	(99,554)	(89,976)
Capitalized interest incurred	(8,697)	(8,377)	(24,225)	(27,985)
Financing commodity derivative settlements	42,341	—	138,237	—
Legal settlements, loss contingencies and other	5,862	3,039	9,378	3,901
Adjusted Free Cash Flow (Non-GAAP)^(a)	$ 56,475	$ 2,992	$ 331,060	$ 10,376


^(a)	Adjusted Free Cash Flow does not include the impact of the Long-Term Incentive Cash Award of $3.0 million and $14.3 million for the three and nine months ended September 30, 2024, respectively. Ascent did not recognize any expense associated with the Cash Award in 2023.

SOURCE Ascent Resources Utica Holdings, LLC