Ascent Resources acquires $1.5 billion in Utica shale properties

By Patrick C. Miller | July 09, 2018

Ascent Resources LLC, headquartered in Oklahoma City, has signed agreements for a combined $1.5 billion purchase of oil and natural gas properties in the Utica shale play.

The agreements are with Hess Corp., CNX Resources, Utica Minerals Development and another undisclosed seller. The acquisitions are expected to close in the third quarter of 2018. They will be funded with a combination of at least $965 million in common equity from Ascent Resources and no more than $535 million of borrowings under the company’s revolving credit facility.

The acquisitions represent about 113,400 net leasehold acres and royalty interests on 69,400 fee mineral acres, spanning all three hydrocarbon windows in the over-pressured core of the Utica shale. They include 93 operated wells with a net production of 216 million cubic feet equivalent per day.

“The properties are largely contiguous with the company’s existing acreage and will allow us to further improve capital efficiency by drilling longer laterals, capturing cost and marketing synergies, and adding premium, near-term drilling locations with a high net revenue interest,” Jeff Fisher, Ascent Resources chairman and CEO.

The acquisitions include more than 380 gross incremental horizontal well locations and an increased working interest in more than 900 gross horizontal well locations. Ascent Resources said the properties complement existing assets, supports extended lateral lengths, further improves capital efficiency and increases the company’s exposure to liquids.

“The acquired assets, more than 60 percent of which are fee mineral acres, further establishes the company as a compelling Utica pure play and will significantly enhance the company’s growth and equity value,” Fisher said.

Ascent Resources is private exploration and production company focused on acquiring, exploring, developing, producing and operating natural gas and oil properties in the Utica shale.