OKLAHOMA CITY – November 04, 2026 -- Ascent Resources Utica Holdings generated $165 million of Adjusted Free Cash Flow in the third quarter of 2026 on net production of 2,190 MMcfe per day, and raised its full-year production guidance while cutting operating cost expectations.
Q3 earnings reflect a $23 million net loss but $438 million in Adjusted EBITDAX
Ascent reported a net loss of $23 million for the quarter against Adjusted Net Income of $214 million. Cash flow from operations reached $346 million. Total capital expenditures were $237 million: $190 million for drilling and completion, $40 million for land and leasehold, and $8 million in capitalized interest.
Output comprised 1,888 MMcf per day of natural gas, 12,293 Bbl per day of oil and 38,065 Bbl per day of NGLs, putting liquids at 14% of the production mix.
Ascent realizes $3.09 per Mcfe before hedges, a $0.14 premium to NYMEX
Settled derivatives lifted the realized price to $3.64 per Mcfe. For the nine months ended September 30, the company realized $3.81 per Mcfe with hedges and $3.73 without.
Year-to-date net income was $566 million and Adjusted Net Income $615 million. Adjusted EBITDAX totaled $1.3 billion, cash flow from operations $1.1 billion and Adjusted Free Cash Flow $413 million. Nine-month capital spending was $757 million, including $583 million of drilling and completion costs. Production averaged 2,172 MMcfe per day over the period.
Ascent retires 9% 2027 notes at par and keeps leverage at 1.29x
Effective November 1, Ascent redeemed its 9% senior unsecured notes due 2027 at par, funded with cash on hand and revolving credit facility borrowings. Pro forma for the redemption, availability under the credit facility exceeds $1.3 billion.
At September 30, total debt was approximately $2.2 billion, including $335 million of credit facility borrowings and $14 million of letters of credit. Liquidity stood at approximately $1.7 billion, made up of $1.7 billion of available borrowing capacity and $9 million of cash. Leverage was 1.29x on LTM Adjusted EBITDAX.
Guidance revision lifts production while holding D&C capital in line
CEO Brooks Shughart said efficiency gains have offset inflationary pressure on capital costs, keeping drilling and completion capital guidance in line with initial expectations. Updated 2026 guidance reflects higher production and lower operating costs.
In the quarter, Ascent spud 12 operated wells, hydraulically fractured 18 wells and turned 17 wells in line, with an average lateral length of 17,425 feet. It held 1,044 gross operated productive Utica wells at quarter-end.
Ascent says it has significant natural gas and crude oil hedges in place, and has hedged a significant portion of its natural gas basis and propane positions for the rest of 2026 and throughout 2027.
MiQ grades 100% of Ascent's gas production A for a fifth straight year
Ascent issued its eighth annual Sustainability Report and received MiQ Grade A certification on all of its natural gas production for the fifth consecutive year. The company scheduled an analyst and investor call for 9:30 AM CT on November 5, 2026.