Ascent Resources Utica Holdings LLC, Oklahoma City, has set 2024 guidance with maintenance production of 2.0-2.1 bcfed (88-90% natural gas), and drilling and completions capex of $625-675 million, a decrease of 23% from 2023.
For 2024, the company’s Utica shale development plan will be more liquids focused, resulting in a modest reduction in gas production as the company continues to rebalance capital allocation, said Ascent's chairman and chief executive officer, Jeff Fisher, in a release Mar. 7.
“We also expect to see a substantial reduction in capital intensity in 2024, which is being driven by continued efficiency gains coupled with shallower declines and a focus on optimization of our production base,” he continued.
The company plans to operate 2.5-3 rigs this year to spud 60-65 wells.
The full-year 2024 total capital budget of $750-810 million is expected to be fully funded with operating cash flow and is expected to be more than sufficient to hold production flat on an annual basis, the company said in a release Mar. 7.
Fourth quarter, full-year 2023
Ascent resources had net production of 2.10 bcfed (1,888 MMcfd natural gas; 10,826 b/d oil; 23,707 b/d NGL), and 2.14 bcfed (1,953 MMcfd natural gas; 10,244 b/d oil; 20,230 b/d NGLs) for the quarter and year, respectively. Liquids production increased to 35,000 b/d during the quarter, a 35% increase over the same prior year period.
In fourth-quarter 2023, the company spudded 15 operated wells, hydraulically fractured 10 wells, and turned-in-line 19 wells with an average lateral length of about 16,700 ft.
For the full-year, Ascent spudded 74 operated wells, hydraulically fractured 75 wells, and turned-in-line 71 wells with an average lateral length of about 14,200 ft. As of Dec. 31, 2023, Ascent had 882 gross operated producing Utica wells.
Net income and adjusted net income were $757 million and $86 million for the quarter, and $2.1 billion and $317 million for the year, respectively.
Ascent incurred $234 million of total capital expenditures in fourth-quarter 2023 consisting of $177 million of drilling and completions costs, $49 million of land and leasehold costs, and $8 million of capitalized interest.
For the year ended Dec. 31, 2023, Ascent reported net income of $2.1 billion and adjusted net income of $317 million. Ascent incurred a total of $1.0 billion of capital expenditures during the year consisting of $844 million of drilling and completions costs, $138 million of land and leasehold costs, and $36 million for capitalized interest.
