News

Third Quarter Highlights:

◦Averaged net production of over 2.3 bcfe per day

◦Realized record Adjusted EBITDAX(1) of $559 million and Net Cash Provided by Operating Activities of $761 million

◦Incurred $195 million of D&C costs and $24 million of land and leasehold costs

◦Generated $277 million of Adjusted Free Cash Flow(1)

◦Reduced total borrowings under our credit facility by $55 million even with funding the remaining portion of the  XTO acquisition

◦Achieved our long-term leverage target of less than 2.0x, ending the quarter at 1.7x on an LTM basis(2)

(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.

(2) Includes the full-year Adjusted EBITDAX impact of the XTO acquisition

Oklahoma City, Oklahoma, November 9, 2022 (PR Newswire) – Ascent Resources Utica Holdings, LLC (“Ascent”, "our" or the "Company") today reported its third quarter 2022 operating and financial results. Additionally, Ascent announced a conference call with analysts and investors scheduled for 9 AM CT / 10 AM ET, Thursday, November 10, 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 third quarter was excellent, both operationally and financially as the team continues to execute on our plan. Production averaged over 2.3 bcfe/d, as we benefited from the strong turn-in-line activity and well performance over the last two quarters. As a result, we generated record quarterly financial results including $277 million of Adjusted Free Cash Flow."

Fisher continued, "As we move through the fourth quarter, the Company is well positioned to capture value and finish the year on a strong note. We continue to work diligently with our partners and contractors to improve efficiencies in the field to ensure our execution and results are aligned with our returns-focused strategy. We are excited about the opportunity in front of us as we close out the year and move into 2023."

Third Quarter 2022 Financial Results

Third quarter 2022 net production averaged 2,339 mmcfe per day, consisting of 2,204 mmcf per day of natural gas, 6,663 bbls per day of oil and 15,826 bbls per day of natural gas liquids ("NGL").

Third quarter 2022 price realizations, including the impact of settled commodity derivatives, were $4.07 per mcfe. Excluding the impact of settled commodity derivatives, price realizations were $8.05 per mcfe in the third quarter of 2022.

For the third quarter of 2022, Ascent reported net income of $47 million, Adjusted Net Income of $307 million and Adjusted EBITDAX of $559 million. Ascent incurred $229 million of total capital expenditures in the third quarter of 2022 including $195 million for D&C costs, $24 million for land and leasehold costs, and $10 million for capitalized interest. The Company generated $277 million of Adjusted Free Cash Flow during the three months ended September 30, 2022, despite a realized commodity hedge loss of approximately $856 million.

Year-to-Date 2022 Financial Results

Net production for the nine months ended September 30, 2022 averaged 2,090 mmcfe per day, consisting of 1,953 mmcf per day of natural gas, 7,308 bbls per day of oil and 15,586 bbls per day of NGLs.

Price realizations, including the impact of settled commodity derivatives, were $3.86 per mcfe for the nine months ended September 30, 2022. Excluding the impact of settled commodity derivatives, price realizations were $7.06 per mcfe for the year-to-date period.

For the nine months ended September 30, 2022, Ascent reported a net loss of $1.24 billion, Adjusted Net Income of $664 million and Adjusted EBITDAX of $1.32 billion. Ascent incurred a total of $741 million of capital expenditures during the nine months ended September 30, 2022 including $629 million for D&C costs, $79 million for land and leasehold costs, and $33 million for capitalized interest. The Company generated $435 million of Adjusted Free Cash Flow during the nine months ended September 30, 2022, despite a realized commodity hedge loss of approximately $1.83 billion.

Balance Sheet and Liquidity

As of September 30, 2022, Ascent had total debt of approximately $2.91 billion, with $805 million of borrowings and $169 million of letters of credit issued under the Credit Facility. Liquidity as of September 30, 2022 was $1.03 billion, comprised of $1.03 billion of available borrowing capacity under the revolving credit facility and $8 million of cash on hand. Our leverage ratio at the end of the quarter was 1.7x based on an LTM Adjusted EBITDAX basis, and 1.3x on an LQA Adjusted EBITDAX basis when including the full-year EBITDAX impact of the XTO acquisition.

Operational Update

During the third quarter of 2022, we spud 19 operated wells, hydraulically fractured 17 wells, and turned-in-line 13 wells with an average lateral length of approximately 12,000 feet. As of September 30, 2022, Ascent had 708 gross operated producing Utica wells.

Over the last two quarters, activity has been exceptionally busy as we brought online 44 new wells across the play, with 27 of the wells turning-in-line between June and August. This level of activity contributed to a substantial increase in production during the third quarter. As we move into the fourth quarter, our turn-in-line activity is expected to increase relative to the third quarter as we were able to source an additional frac crew in October. The activity will be more balanced than prior quarters as several liquids rich locations are set to come online. On the cost front, the team continues to experience many of the inflationary and supply chain issues impacting the industry and economy at large, but we are working through these challenges to mitigate further impacts to our program.

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

Contact:

Chris Benton

Director – Finance and Investor Relations

405-252-7850

chris.benton@ascentresources.com

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)

ASCENT RESOURCES UTICA HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASCENT RESOURCES UTICA HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

ASCENT RESOURCES UTICA HOLDINGS, LLC

NATURAL GAS, OIL AND NGL PRODUCTION AND PRICES

(Unaudited)

(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)

(a)Excludes the $250.9 million paid for the XTO acquisition.

ASCENT RESOURCES UTICA HOLDINGS, LLC

RECONCILIATIONS OF ADJUSTED NET INCOME (LOSS)

(Unaudited)

(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; stock-based compensation;  (gains) losses on purchases or exchanges of debt; and other operating expenses including changes in legal reserves, settlements and other items which 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.

ASCENT RESOURCES UTICA HOLDINGS, LLC

RECONCILIATIONS OF ADJUSTED EBITDAX AND NET DEBT

(Unaudited)

Adjusted EBITDAX

(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; stock-based compensation; (gains) losses on purchases or exchanges of debt; and other operating expenses including changes in legal reserves, settlements and other items which 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.

ASCENT RESOURCES UTICA HOLDINGS, LLC

RECONCILIATIONS OF ADJUSTED EBITDAX AND NET DEBT (CONTINUED)

(Unaudited)

LTM Adjusted EBITDAX

(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; stock-based compensation; (gains) losses on purchases or exchanges of debt; and other operating expenses including changes in legal reserves, settlements and other items which 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.

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

(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 September 30, 2022 and 2021, respectively. Refer to our Reconciliations of Adjusted EBITDAX and Net Debt for more details regarding our LTM Adjusted EBITDAX calculations.

(c)Our Net Debt to LTM Adjusted EBITDAX was 1.7x as of September 30, 2022 when including the full-year EBITDAX impact of the XTO acquisition, as provided by our debt covenant calculations.

ASCENT RESOURCES UTICA HOLDINGS, LLC

RECONCILIATIONS OF ADJUSTED FREE CASH FLOW

(Unaudited)

(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; land and leasehold costs incurred; capitalized interest incurred; financing commodity derivative settlements; and certain other operating expenses including changes in legal reserves, including settlements and other items which affect the comparability of results or that are not indicative of trends in the ongoing business.  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.