Appalachian operator Ascent Resources Utica Holdings LLC, Oklahoma City, expects full-year 2022 total production of 2.0-2.1 bcfed (92-94% natural gas) with a capital budget of $710-770 million, fully funded with operating cash flow.
The company plans to operate 3.5 rigs and expects to spud 80-85 wells with average lateral lengths of wells turned in line (75-80) of 13,800 ft.
The company averaged net production of 2.03 bcfed for fourth-quarter 2021 and 1.94 bcfed for full-year 2021 and generated adjusted EBITDAX of $283 million for the quarter and $1.0 billion for the full year. Full-year 2021 capex was $672 million.
In fourth-quarter 2021, 16 wells were spudded with 4 operated rigs. For full-year 2021, 72 wells were spudded with 3.9 operated rigs.
The company generated $54 million of positive free cash flow during the quarter and $175 million for the year.
Ascent Resources is one of the largest private producers of natural gas in the US based on daily production and the largest producer of natural gas in Ohio. The company holds a large, contiguous, acreage position of about 335,000 net leasehold acres, including some 73,000 mineral acres, in the core of the southern Utica Shale, primarily in Belmont, Jefferson, Guernsey, Harrison, and Noble counties Ohio.