ASCENT RESOURCES UTICA HOLDINGS, LLC REPORTS SECOND QUARTER OPERATING AND FINANCIAL RESULTS AND ANNOUNCES UPDATED 2022 GUIDANCE

News provided by

Ascent Resources Utica Holdings, LLC

Aug 10, 2022, 16:00 ET

Second Quarter Highlights:

Averaged net production of 2.0 bcfe per day for the quarter, while exiting June at 2.2 bcfe per day
Realized pre-hedge natural gas equivalent price of $7.58 per mcfe, a $0.41 premium to NYMEX pricing
Generated Adjusted EBITDAX⁽¹⁾ of $477 million and net cash provided by operating activities of $257 million for the quarter
Incurred $236 million of D&C costs and $24 million of acquisition and leasehold costs during the quarter
Generated $160 million of Adjusted Free Cash Flow⁽¹⁾during the quarter
Received MiQ Grade "A" certification on substantially all of our production in the Utica Shale
Extended our Credit Facility through June of 2027, while increasing the borrowing base and elected commitments to $3.0 billion and $2.0 billion, respectively
Closed on the previously announced $270 million bolt-on acquisition in early August ($27 million deposit paid during the second quarter)
Issued our 2021 Environmental, Social and Governance Report and remain committed to reducing our environmental impact while delivering clean, affordable and responsibly sourced natural gas to the North American market

⁽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, Aug. 10, 2022 /PRNewswire/ -- Ascent Resources Utica Holdings, LLC ("Ascent", "our" or the "Company") today reported its second quarter 2022 operating and financial results and issued updated full-year 2022 guidance. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, August 11, 2022. 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.

Commenting on the quarter, Ascent's Chairman and Chief Executive Officer, Jeff Fisher said, "The second quarter was one of exceptional execution for Ascent. While production for the quarter averaged 2.0 bcfe/d, we brought online 31 wells, with nearly half of those in the month of June, and exited the quarter at 2.2 bcfe/d. The business continues to be anchored by our strong operational execution and continued improvements to our balance sheet."

Fisher continued, "We have elected to accelerate some activity from 2023 into the back half of this year in order to take advantage of service availability and a supportive macro backdrop. As a result of this change, and the continued inflationary headwinds, we are increasing our capital budget for the year while also revising our 2022 production guidance higher. We believe this change strikes the appropriate balance, allowing us to sell incremental unhedged volumes while de-risking our 2023 development plan. The prospects for the standalone business are stronger than ever as we remain well positioned to capitalize on the current macro environment."

Second Quarter 2022 Financial Results

Second quarter 2022 net production averaged 1,971 mmcfe per day, consisting of 1,828 mmcf per day of natural gas, 8,330 bbls per day of oil and 15,473 bbls per day of natural gas liquids ("NGL").

Second quarter 2022 price realizations, including the impact of settled commodity derivatives, were $4.21 per mcfe. Excluding the impact of settled commodity derivatives, price realizations were $7.58 per mcfe in the second quarter of 2022.

For the second quarter of 2022, Ascent reported net income of $285 million, Adjusted Net Income of $277 million and Adjusted EBITDAX of $477 million. Ascent incurred $272 million of total capital expenditures in the second quarter of 2022 including $236 million for well costs, $24 million for acquisition and leasehold costs, and $12 million for capitalized interest. The Company generated $160 million of Adjusted Free Cash Flow during the three months ended June 30, 2022, despite a realized hedge loss of approximately $604 million.

Year-to-Date 2022 Financial Results

Net production for the six months ended June 30, 2022 averaged 1,963 mmcfe per day, consisting of 1,825 mmcf per day of natural gas, 7,635 bbls per day of oil and 15,464 bbls per day of NGLs.

Price realizations, including the impact of settled commodity derivatives, were $3.72 per mcfe for the six months ended June 30, 2022. Excluding the impact of settled commodity derivatives, price realizations were $6.46 per mcfe for the year-to-date period.

For the six months ended June 30, 2022, Ascent reported a net loss of $1.3 billion, Adjusted Net Income of $358 million and Adjusted EBITDAX of $757 million. Ascent incurred a total of $511 million of capital expenditures during the six months ended June 30, 2022 including $434 million for well costs, $55 million for acquisition and leasehold costs, and $22 million for capitalized interest. The Company generated $158 million of Adjusted Free Cash Flow during the six months ended June 30, 2022, despite a realized hedge loss of approximately $971 million.

Balance Sheet and Liquidity

As of June 30, 2022, Ascent had total debt of approximately $3.0 billion, with $860 million of borrowings and $169 million of letters of credit issued under the Credit Facility. Liquidity as of June 30, 2022 was $978 million, comprised of $971 million of available borrowing capacity under the revolving credit facility and $7 million of cash on hand. Our leverage ratio at the end of the quarter was 2.3x based on an LTM Adjusted EBITDAX basis, and 1.5x on an LQA Adjusted EBITDAX basis.

In June, Ascent 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 lesser of the borrowing base and the elected commitment amount.

Operational Update

During the second quarter of 2022, we spud 22 operated wells, hydraulically fractured 22 wells, and turned in line 31 wells with an average lateral length of approximately 14,600 feet. As of June 30, 2022, Ascent had 708 gross operated producing Utica wells.

The large number of wells turned in line throughout the second quarter resulted in material production growth, as we exited the quarter at 2.2 bcfe/d. The Company continues to execute at a high level, but is experiencing many of the inflationary pressures impacting the industry and economy at large which, when coupled with the acceleration in activity, is driving the majority of the increase in our D&C capital guidance.

ESG Initiatives Update

The second quarter was again highlighted for Ascent by a number of key ESG accomplishments. As we continued to push for safe and environmentally friendly operatorship in the field, we were able to certify substantially all of our production by MiQ as Grade "A." Additionally, we entered into a multi-year agreement with Spire Marketing to provide responsibly sourced natural gas to their clients through North America and published our fourth annual ESG Report covering the 2021 calendar year.

Guidance Update

The Company has updated its full-year 2022 guidance to reflect current market conditions as well as the acceleration of activity into the back half of the year. A detailed summary including production, expense and operational counts is included in the table that follows:

Updated 2022 Guidance

Production
Total Production (mmcfe/d)		2,025 - 2,125
% Natural Gas		92% - 94%

Differentials
Natural Gas ($/mcf)		($0.15) - ($0.05)
Crude Oil ($/bbl)		($7.50) - ($7.00)
NGL (% of WTI)		40% - 45%

Operating Expenses
Total Operating Expense^(a)		$1.40 - $1.45
G&A^(b)		$0.08 - $0.09

Capital Expenditures Incurred ($mm)^(c)		$920 - $950
D&C		$825 - $850
Land		$95 - $100

Operations / Well Counts
Operated Rigs		3.75
Wells Spud		80 - 85
Wells TIL'd		85 - 90
Average Lateral Length of TILs		13,800'

^(a) Includes GP&T, LOE, and Taxes Other than Income

^(b)Excludes stock-based compensation expense and non-recurring legal benefit

^(c) Excludes Capitalized Interest

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 low-cost clean-burning energy to our country and the world, while reducing environmental impacts.

Contact:

Chris Benton
Director – 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		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Revenues:
Natural gas	$ 1,214,653	$ 447,479	$ 2,027,531	$ 877,677
Oil	77,603	50,797	131,969	92,755
NGL	68,058	52,329	137,555	107,861
Commodity derivative loss	(584,421)	(665,763)	(2,579,981)	(764,433)
Total Revenues	775,893	(115,158)	(282,926)	313,860
Operating Expenses:
Lease operating expenses	21,786	19,184	47,193	38,224
Gathering, processing and transportation expenses	242,530	236,911	476,075	459,696
Taxes other than income	10,900	10,348	21,422	19,388
Exploration expenses	12,015	16,539	30,424	35,032
General and administrative expenses	7,257	12,523	27,100	29,092
Depreciation, depletion and amortization	149,771	147,763	302,050	287,219
Total Operating Expenses	444,259	443,268	904,264	868,651
Income (Loss) from Operations	331,634	(558,426)	(1,187,190)	(554,791)
Other Income (Expense):
Interest expense, net	(49,787)	(41,353)	(94,752)	(82,810)
Change in fair value of contingent payment right	2,977	(13,338)	(5,003)	(18,784)
Losses on purchases or exchanges of debt	—	(3,822)	—	(3,822)
Other income (expense)	103	(3)	785	345
Total Other Expense	(46,707)	(58,516)	(98,970)	(105,071)
Net Income (Loss)	$ 284,927	$ (616,942)	$ (1,286,160)	$ (659,862)

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

	June 30,	December 31,
($ in thousands)	2022	2021

Current Assets:
Cash and cash equivalents	$ 6,827	$ 5,674
Accounts receivable – natural gas, oil and NGL sales	725,879	453,464
Accounts receivable – joint interest and other	12,510	8,309
Short-term derivative assets	2,340	6,866
Other current assets	9,639	9,012
Total Current Assets	757,195	483,325
Property and Equipment:
Natural gas and oil properties, based on successful efforts accounting	9,865,712	9,383,879
Other property and equipment	37,800	36,318
Less: accumulated depreciation, depletion and amortization	(3,527,391)	(3,225,844)
Property and Equipment, net	6,376,121	6,194,353
Other Assets:
Long-term derivative assets	1,235	522
Other long-term assets	82,056	46,241
Total Assets	$ 7,216,607	$ 6,724,441

Current Liabilities:
Accounts payable	$ 60,399	$ 86,812
Accrued interest	42,628	45,929
Short-term derivative liabilities	1,410,519	648,873
Other current liabilities	645,707	517,953
Total Current Liabilities	2,159,253	1,299,567
Long-Term Liabilities:
Long-term debt, net	2,960,497	2,588,248
Long-term derivative liabilities	975,250	435,022
Other long-term liabilities	110,062	104,796
Total Long-Term Liabilities	4,045,809	3,128,066
Member's Equity	1,011,545	2,296,808
Total Liabilities and Member's Equity	$ 7,216,607	$ 6,724,441

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

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Cash Flows from Operating Activities:
Net income (loss)	$ 284,927	$ (616,942)	$ (1,286,160)	$ (659,862)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	149,771	147,763	302,050	287,219
Loss on commodity derivatives	584,421	665,763	2,579,981	764,433
Cash settlements of commodity derivatives	(547,520)	(35,649)	(914,683)	(53,204)
Impairment of unproved natural gas and oil properties	11,649	15,987	29,507	33,381
Non-cash interest expense	4,981	4,672	8,102	9,219
Stock-based compensation	4,176	902	5,051	1,985
Change in fair value of contingent payment right	(2,977)	13,338	5,003	18,784
Losses on purchases or exchanges of debt	—	3,810	—	3,810
Other	(28)	(27)	(28)	(20)
Changes in operating assets and liabilities	(232,110)	(15,713)	(189,503)	(11,495)
Net Cash Provided by Operating Activities	257,290	183,904	539,320	394,250
Cash Flows from Investing Activities:
Drilling and completion costs	(218,220)	(129,882)	(426,830)	(240,433)
Acquisitions of natural gas and oil properties	(33,765)	(18,536)	(71,000)	(39,137)
Deposits on natural gas and oil property acquisition	(27,000)	—	(27,000)	—
Additions to other property and equipment	(406)	(42)	(995)	(135)
Net Cash Used in Investing Activities	(279,391)	(148,460)	(525,825)	(279,705)
Cash Flows from Financing Activities:
Proceeds from credit facility borrowings	1,235,000	385,000	2,080,000	710,000
Repayment of credit facility borrowings	(835,000)	(730,000)	(1,715,000)	(1,120,000)
Proceeds from issuance of long-term debt	—	400,000	—	400,000
Repayment of long-term debt	—	(71,392)	—	(84,173)
Cash paid for debt issuance costs	(16,731)	(6,361)	(16,731)	(6,808)
Cash settlements of commodity derivatives	(56,035)	(5,354)	(56,035)	(8,810)
Cash paid to restructure commodity derivatives	(300,000)	—	(300,000)	—
Other	(4,360)	(3,353)	(4,576)	(3,579)
Net Cash Provided by (Used in) Financing Activities	22,874	(31,460)	(12,342)	(113,370)
Net Increase in Cash and Cash Equivalents	773	3,984	1,153	1,175
Cash and Cash Equivalents, Beginning of Period	6,054	6,034	5,674	8,843
Cash and Cash Equivalents, End of Period	$ 6,827	$ 10,018	$ 6,827	$ 10,018

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

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021

Net Production Volumes:
Natural gas (mmcf)	166,367	160,886	330,253	304,853
Oil (mbbls)	758	857	1,382	1,697
NGL (mbbls)	1,408	1,830	2,799	3,858
Natural Gas Equivalents (mmcfe)	179,359	177,014	355,339	338,185

Average Daily Net Production Volumes:
Natural gas (mmcf/d)	1,828	1,768	1,825	1,684
Oil (mbbls/d)	8	9	8	9
NGL (mbbls/d)	15	20	15	21
Natural Gas Equivalents (mmcfe/d)	1,971	1,945	1,963	1,868
% Natural Gas	92 %	91 %	93 %	90 %
% Liquids	8 %	9 %	7 %	10 %

Average Sales Prices:
Natural gas ($/mcf)	$ 7.30	$ 2.78	$ 6.14	$ 2.88
Oil ($/bbl)	$ 102.34	$ 59.27	$ 95.48	$ 54.66
NGL ($/bbl)	$ 48.34	$ 28.60	$ 49.14	$ 27.95

Natural Gas Equivalents ($/mcfe)	$ 7.58	$ 3.11	$ 6.46	$ 3.19
Settlements of commodity derivatives ($/mcfe)^(a)	(3.37)	(0.23)	(2.74)	(0.18)
Average sales price, after effects of settled derivatives ($/mcfe)	$ 4.21	$ 2.88	$ 3.72	$ 3.01


^(a)	Excludes the one-time payment of $300 million in April 2022 to restructure a portion of our May through December 2022 natural gas swaps, resulting in an increase of our weighted average strike prices for these periods.

ASCENT RESOURCES UTICA HOLDINGS, LLC
CAPITAL EXPENDITURES INCURRED
(Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Capital Expenditures Incurred:
Drilling and completion costs incurred	$ 235,509	$ 133,926	$ 433,887	$ 260,417
Acquisition and leasehold costs incurred^(a)	23,919	9,478	55,155	17,880
Capitalized interest incurred	12,299	12,671	22,298	25,974
Total Capital Expenditures Incurred	$ 271,727	$ 156,075	$ 511,340	$ 304,271


^(a)	Excludes the $27 million deposit paid in June 2022 for the bolt-on acquisition.

ASCENT RESOURCES UTICA HOLDINGS, LLC
RECONCILIATIONS OF ADJUSTED NET INCOME (LOSS)
(Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Net Income (Loss) (GAAP)	$ 284,927	$ (616,942)	$ (1,286,160)	$ (659,862)
Adjustments to reconcile net income (loss) to Adjusted Net Income:
Impairment of unproved natural gas and oil properties	11,649	15,987	29,507	33,381
Loss on commodity derivatives	584,421	665,763	2,579,981	764,433
Commodity derivative settlements^(a)	(603,555)	(41,003)	(970,718)	(62,014)
Unrealized loss on interest rate derivatives	(1,837)	(57)	(3,575)	(196)
Change in fair value of contingent payment right	(2,977)	13,338	5,003	18,784
Non-recurring legal benefit	(10,564)	—	(10,564)	—
Stock-based compensation	4,176	902	5,051	1,985
Losses on purchases or exchanges of debt	—	3,822	—	3,822
Other	10,976	—	9,192	—
Adjusted Net Income (Non-GAAP)^(b)(c)	$ 277,216	$ 41,810	$ 357,717	$ 100,333


^(a)	Excludes the one-time payment of $300 million in April 2022 to restructure a portion of our May through December 2022 natural gas swaps, resulting in an increase of our weighted average strike prices for these periods.

^(b)	As shown above and on the following pages, Ascent uses Adjusted Net Income (Loss), Adjusted EBITDAX, Last Twelve Months ("LTM") Adjusted EBITDAX, Last Quarter Annualized ("LQA") Adjusted EBITDAX, Net Debt, and Adjusted 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 and lenders, 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 or used in operating, investing and financing activities or other income or cash flow statement data prepared in accordance with 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:

	•	are widely used by investors in the natural gas and oil industry to measure a company's operating performance without regard to items excluded from the calculation of such terms, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors;
	•	are more comparable to estimates used by analysts;
	•	help investors to more meaningfully evaluate and compare the results of Ascent's operations from period to period by removing the effect of its capital structure from its operating structure;
	•	excludes one-time items, non-cash items or items whose timing or amount cannot be reasonably estimated; and
	•	are used by Ascent's management team for various purposes, including as a measure of operating performance, in presentations to its Board of Managers and as a basis for strategic planning and forecasting.

	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.

^(c)	Ascent defines "Adjusted Net Income (Loss)" as net income (loss) before impairment of unproved natural gas and oil properties; 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; non-recurring legal expense (benefit); stock-based compensation; (gains) losses on purchases or exchanges of debt; and other non-recurring items. 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.

ASCENT RESOURCES UTICA HOLDINGS, LLC
RECONCILIATIONS OF ADJUSTED EBITDAX AND NET DEBT
(Unaudited)
Adjusted EBITDAX

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Net Income (Loss) (GAAP)	$ 284,927	$ (616,942)	$ (1,286,160)	$ (659,862)
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	12,015	16,539	30,424	35,032
Depreciation, depletion and amortization	149,771	147,763	302,050	287,219
Interest expense, net	49,787	41,353	94,752	82,810
Loss on commodity derivatives	584,421	665,763	2,579,981	764,433
Commodity derivative settlements^(a)	(603,555)	(41,003)	(970,718)	(62,014)
Change in fair value of contingent payment right	(2,977)	13,338	5,003	18,784
Non-recurring legal benefit	(10,564)	—	(10,564)	—
Stock-based compensation	4,176	902	5,051	1,985
Losses on purchases or exchanges of debt	—	3,822	—	3,822
Other	8,999	—	7,215	—
Adjusted EBITDAX (Non-GAAP)^(b)(c)	$ 477,000	$ 231,535	$ 757,034	$ 472,209


^(a)	Excludes the one-time payment of $300 million in April 2022 to restructure a portion of our May through December 2022 natural gas swaps, resulting in an increase of our weighted average strike prices for these periods.
^(b)	See footnote (a) on the Reconciliations of Adjusted Net Income (Loss) for a discussion of our uses of non-GAAP measures.
^(c)	Ascent defines "Adjusted EBITDAX" as net income (loss) before exploration expenses; depreciation, depletion and amortization; 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; non-recurring legal expense (benefit); stock-based compensation; (gains) losses on purchases or exchanges of debt; and other non-recurring items. 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.

ASCENT RESOURCES UTICA HOLDINGS, LLC
RECONCILIATIONS OF ADJUSTED EBITDAX AND NET DEBT (CONTINUED)
(Unaudited)
LTM Adjusted EBITDAX

	Three Months Ended				Twelve Months Ended
	June 30,	March 31,	December 31,	September 30,	June 30,
($ in thousands)	2022	2022	2021	2021	2022

Net Income (Loss) (GAAP)	$ 284,927	$ (1,571,087)	$ 1,110,012	$ (1,256,435)	$ (1,432,583)
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	12,015	18,409	26,061	22,274	78,759
Depreciation, depletion and amortization	149,771	152,279	159,286	151,902	613,238
Interest expense, net	49,787	44,965	47,034	44,996	186,782
(Gain) loss on commodity derivatives	584,421	1,995,560	(532,585)	1,512,044	3,559,440
Commodity derivative settlements^(a)	(603,555)	(367,163)	(534,216)	(227,286)	(1,732,220)
Change in fair value of contingent payment right	(2,977)	7,980	(407)	1,544	6,140
Non-recurring legal expense (benefit)	(10,564)	—	1,372	—	(9,192)
Stock-based compensation	4,176	875	815	816	6,682
Other	8,999	(1,784)	5,847	—	13,062
Adjusted EBITDAX (Non-GAAP)^(b)(c)	$ 477,000	$ 280,034	$ 283,219	$ 249,855	$ 1,290,108

	Three Months Ended				Twelve Months Ended
	June 30,	March 31,	December 31,	September 30,	June 30,
($ in thousands)	2021	2021	2020	2020	2021

Net Income (Loss) (GAAP)	$ (616,942)	$ (42,920)	$ 168,636	$ (552,389)	$ (1,043,615)
Adjustments to reconcile net income (loss) to Adjusted EBITDAX:
Exploration expenses	16,539	18,493	26,323	28,096	89,451
Depreciation, depletion and amortization	147,763	139,456	162,431	196,232	645,882
Interest expense, net	41,353	41,457	35,791	33,292	151,893
(Gain) loss on commodity derivatives	665,763	98,670	(228,899)	386,020	921,554
Commodity derivative settlements	(41,003)	(21,011)	26,279	114,155	78,420
Change in fair value of contingent payment right	13,338	5,446	6,518	—	25,302
Losses on purchases or exchanges of debt	3,822	—	15,708	3,632	23,162
Stock-based compensation	902	1,083	1,065	710	3,760
Adjusted EBITDAX (Non-GAAP)^(b)(c)	$ 231,535	$ 240,674	$ 213,852	$ 209,748	$ 895,809


^(a)	Excludes the one-time payment of $300 million in April 2022 to restructure a portion of our May through December 2022 natural gas swaps, resulting in an increase of our weighted average strike prices for these periods.
^(b)	See footnote (a) on the Reconciliations of Adjusted Net Income (Loss) for a discussion of our uses of non-GAAP measures.
^(c)	Ascent defines "Adjusted EBITDAX" as net income (loss) before exploration expenses; depreciation, depletion and amortization; 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; non-recurring legal expense (benefit); stock-based compensation; (gains) losses on purchases or exchanges of debt; and other non-recurring items. 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.

ASCENT RESOURCES UTICA HOLDINGS, LLC
RECONCILIATIONS OF ADJUSTED EBITDAX AND NET DEBT (CONTINUED)
(Unaudited)
Net Debt, Net Debt to LTM Adjusted EBITDAX and Net Debt to LQA Adjusted EBITDAX

	June 30,
($ in thousands)	2022	2021

Net Debt:
Total debt	$ 2,960,497	$ 2,629,269
Less: cash and cash equivalents	6,827	10,018
Net Debt^(a)	$ 2,953,670	$ 2,619,251

Net Debt to LTM Adjusted EBITDAX:
Net Debt^(a)	$ 2,953,670	$ 2,619,251
LTM Adjusted EBITDAX (Non-GAAP)^(b)	$ 1,290,108	$ 895,809
Net Debt to LTM Adjusted EBITDAX	2.3 x	2.9 x

Net Debt to LQA Adjusted EBITDAX:
Net Debt^(a)	$ 2,953,670	$ 2,619,251
LQA Adjusted EBITDAX (Non-GAAP)	$ 1,908,000	$ 926,140
Net Debt to LQA Adjusted EBITDAX	1.5 x	2.8 x


^(a)	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 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.
^(b)	Adjusted EBITDAX for the LTM ended June 30, 2022 and 2021, respectively. Refer to our Reconciliations of Adjusted EBITDAX and Net Debt for more details regarding our LTM Adjusted EBITDAX calculations.

ASCENT RESOURCES UTICA HOLDINGS, LLC
RECONCILIATIONS OF ADJUSTED FREE CASH FLOW
(Unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
($ in thousands)	2022	2021	2022	2021

Net Cash Provided by Operating Activities (GAAP)	$ 257,290	$ 183,904	$ 539,320	$ 394,250
Adjustments to reconcile Net Cash Provided by Operating Activities to Adjusted Free Cash Flow:
Changes in operating assets and liabilities	232,110	15,713	189,503	11,495
Drilling and completion costs incurred	(235,509)	(133,926)	(433,887)	(260,417)
Acquisition and leasehold costs incurred	(23,919)	(9,478)	(55,155)	(17,880)
Capitalized interest incurred	(12,299)	(12,671)	(22,298)	(25,974)
Financing commodity derivative settlements	(56,035)	(5,354)	(56,035)	(8,810)
Non-recurring legal benefit	(10,564)	—	(10,564)	—
Other	8,999	12	7,215	12
Adjusted Free Cash Flow (Non-GAAP)^(a)(b)	$ 160,073	$ 38,200	$ 158,099	$ 92,676


^(a)	See footnote (a) on the Reconciliations of Adjusted Net Income (Loss) for a discussion of our uses of non-GAAP measures.
^(b)	Adjusted 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 "Adjusted Free Cash Flow" as net cash provided by operating activities adjusted for changes in operating assets and liabilities; drilling and completion costs incurred; acquisition and leasehold costs incurred; capitalized interest incurred; financing commodity derivative settlements; non-recurring legal expense (benefit); and certain other non-recurring items. 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 operating activities, as determined by GAAP.