February 24, 2020€¦ · presentation at any subsequent time shall not under any circumstances...

First Quarter 2020 Investor Presentation

JPMORGA N

ENERGY

CONFERENCE

February 24, 2020



Disclaimer

This presentation is for informational purposes only and contains general information about the activities of Ascent Resources, LLC and certain of its subsidiaries (collectively,

“Ascent”) that does not purport to be complete. Statements in this presentation are made as of the date hereof unless stated otherw ise herein, and the delivery of this

presentation at any subsequent time shall not under any circumstances create an implication that the information contained herein is correct as of such subsequent

time. Ascent is under no obligation to update or keep current the information contained in this presentation. No representation or w arranty, express or implied, is made as to,

and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein and any reliance you place on them

w ill be at your sole risk.

This presentation provides disclosure of the proved reserves of Ascent. Proved reserves are those quantit ies of natural gas, oil and natural gas liquids, w hich, by analysis of

geoscience and engineer ing data, can be estimated w ith reasonable certainty to be economically producible—from a given date forw ard, from know n reservoirs, and under

existing economic conditions, operating methods, and government regulations—prior to the time at w hich contracts providing the right to operate expire, unless evidence

indicates that renew al is reasonably certain, regardless of w hether deterministic or probabilistic methods are used for the estimation. In this presentation, proved reserves for

Ascent at December 31, 2019 are based on reports prepared by Softw are Integrated Solutions, a division of Schlumberger Technology Corporation, Ascent’s independent

reserve engineers, and are estimated utilizing SEC pricing as of December 01, 2019.

Drilling locations have not been r isked by Ascent. Actual locations dr illed and reserves ultimately recovered may differ substantially from estimates provided herein. There is no

commitment by Ascent to drill all of the w ell locations that have been attributed to these reserves. Factors affecting production forecasts and ultimate hydrocarbon recovery

include the scope of the ongoing dr illing program, w hich w ill be directly affected by the availability of capital, drilling and production costs, availability of drilling services and

equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors, including geological and mechanical factors affecting

hydrocarbon recovery rates. Estimates of reserve potential may change signif icantly as development of Ascent’s natural gas, oil and natural gas liquids assets provide

additional data. Production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing

w ells and the undertaking and outcome of future drilling activity, w hich may be affected by commodity price declines or drilling cost increases.

Market and competitive position data in this presentation has generally been obtained from industry publications and surveys or studies conducted by third-party sources.

There are limitations w ith respect to the availability, accuracy, completeness and comparability of such data. Ascent has prepared this presentation based on information

available to it, including information derived from public sources that have not been independently ver if ied, and no assurance can be given of its accuracy or

completeness. Certain statements in this presentation regarding the market and competitive pos ition data are based on the internal analyses of Ascent, w hich involve certain

assumptions and estimates. These internal analyses have not been verif ied by any independent sources and there can be no assurance that the assumptions or estimates are

accurate.

This presentation is not an offer to sell, or the solicitation of an offer to buy, any securit ies or debt of Ascent in any jur isdict ion, and nothing in it should be construed as an offer,

invitation, or recommendation in respect of securities. Ascent, its aff iliates and advisors do not accept any liability w hatsoever for any loss how soever arising, directly or

indirectly, from the use of the information presented or otherw ise in connection w ith the presentation.

Non-GAAP Financial Measures

This presentation includes financ ial measures that are not in accordance w ith U.S. generally accepted accounting principles (“GAA P”), including, but not limited to free cash

f low (“FCF”), adjusted net income and adjusted EBITDA X. While Ascent believes that such measures are useful, they should not be used as a replacement for f inancial

measures that are in accordance w ith GAAP. Please see additional disclosures for definitions at w ww.ascentresources.com.

2


Forward-Looking Statements

This presentation, and oral statements made in connection with this presentation, contain forward-looking statements, within the meaning of US federal securities laws. Forward-looking statements

express views of Ascent regarding future plans and expectations. They include, but are not limited to, statements that include words such as “may,” “could,” “would,” “should,” “believe,” “expect,”

“anticipate,” “plan,” “estimate,” “target,” “project,” “plan,” “intend,” and similar wordsor expressions.

Forward-looking statements in this presentation include, but are not limited to, statements regarding future operations, business strategy, and past, present, or future values of the anticipated reserves,

cash flows, income, costs, expenses, liabilities, and profits, if any, of Ascent. These statements are based on numerous assumptions and are subject to known and unknown risks and

uncertainties. These assumptions may not materialize. Actual future results may vary materially from those expressed or implied in these forward-looking statements, and our business, financial

condition, and results of operations could be materially and adversely affected by numerous factors, including such known and unknown risks and uncertainties. As a result, forward-looking statements

should be understood to be only predictionsand statementsof our current beliefs; they are not guaranteesof performance.

All of the forward-looking statements in thispresentation are qualified by risks related to our ability or inability to, among other things:

• execute on our financial strategy and accessthe capital and financing required to achieve our businessplan;

• replace our reserveswith new reserves and develop those reserves;

• execute on the assumptionsregarding our dril ling anddevelopment plan;

• manage increasesin the cost of, fluctuation in availabil ity of, and competition for, goods, services, and personnel;

• acquire additional leasehold or fee mineral acreage;

• manage changesin, and volatility of, natural gas, oil and natural gasliquidspricesand the potential impactof such changeson our asset carrying values;

• convert our reserves into production on an economic basis;

• successfully implement the latest horizontal drill ing and completion techniques;

• effectively utilize technology, including 3D seismic data, to identify future reservesand execute our drill ing and development plan;

• cure any defects impairing title to our properties;

• mitigate credit riskposed by significantcustomersand other participating owners;

• access third-party transportation facilitiesand infrastructure;

• manage conflictsof interest with our directorsand officers;

• mitigate uncertainty regarding derivative instrumentsand related regulation;

• deal with possible regulatory responsesor liability related to seismic activity in our area of operations;

• respond to shifting government regulatory requirementswith respect to unconventional resource recovery, including hydraulic fracture stimulation andsaltwater disposal;

• mitigate uncertainty regarding our reserve estimatesand future operating results;

• accurately predict the timing and amount of our future natural gas, oil, and natural gasliquidsproduction;

• manage operating risks, losses, and liabilitiesarising from uninsured or underinsured events;

• access water sourcing, distribution, and disposal systems;

• generate sufficient cash flow to pay fixedcharges;

• deal with the imposition of additional taxeson natural gas, oil,and natural gasliquidsexploration and development;

• control our operating expensesand other costs;

• navigate through general credit market and economic conditions;

• manage risks and cost of compliance with applicable lawsand regulations, including environmental lawsand regulations;

• respond to competition and litigation;

• maintain accessto capital on termsacceptable to Ascent and manage restrictions in our debt instruments;

• manage the effectsof the COVID-19 pandemic;

• meet our plans, objectives, expectations, and intentionscontained in thispresentation; and

• recognize and mitigate other risks to our planned objectivesdescribed herein.

The cautionary statements in this presentation expressly qualify all of our forward-looking statements. The forward-looking statements speak only as of the date of this presentation and undue reliance

should not be placed on these statements. We disclaim any obligation to update any forward-lookingstatementsafter the date of thispresentation.

3

First Quarter 2020 Investor Presentation 4

• Operational excellence in the efficient development and delivery of our high quality, low cost resource base

• Financial discipline and a strong hedge book that will result in sustainable positive free cash flow• Responsible environmental stewardship and the unwavering belief that safety is our top priority• Diversified marketing portfolio to reach premium markets

• Strategic mineral ownership portfolio that drives higher margins and dependable cash flow

Ascent is differentiated through:


Moderating Activity in 2020 Based on Current Market Dynamics

• Reduce liquids rich activity and focus on maintaining sustainable free cash flow generation

• Improving balance sheet and liquidity to ensure flexibility in a dynamic and challenging market

• Allocate capital to lowest risk, high rate of return locations focused on premium dry gas areas of our position

• Continue improving capital efficiency and leverage our basin-leading cost structure

• Disciplined hedging program mitigates risk to cash flow in depressed commodity price environment

Proactive Response to Global Pandemic

and OPEC+ Disruption

5

1) Bold f igures represent material updates.

Previous 2020E Guidance / Outlook

Rig / Frac Crews 4/2

Capital Allocation 75% Dry Gas 25% Liquids Rich

Total Capex $700mm – $800mm

Avg. Cost /

Lateral Foot$700 – $800

Free Cash Flow $100mm – $150mm

Production >2.0 bcfe/d

Debt Maturities $1.1bn through 2022

Updated 2020E Guidance / Outlook(1)

Rig / Frac Crews 3/1

Capital Allocation 85% Dry Gas 15% Liquids Rich

Total Capex $600mm – $650mm

Avg. Cost /

Lateral Foot$640 – $660

Free Cash Flow $50mm – $100mm

Production >2.0 bcfe/d

Debt Maturities <$1.0bn through 2022


Ascent Continues to Outperform

Despite Challenging Macro-Environment

6

Value Drivers

Free Cash Flow Growth

and Strong Returns

• Positive FCF expected in 2020 based on a revised three rig program(1)

• Temporarily dropped rig in liquids-rich acreage in response to oil price collapse

• >50% half-cycle returns in current development support additional value growth(2)

Low Cost / High-Margin

Appalachia Operator with

Substantial Scale

• Top-tier capital efficiency in Appalachia (sub-$650 per lateral foot D&C costs)

• Best combination of production cost and topline performance resulting in strong adjusted EBITDAX per unit

• ~350,000 net acres in the core of the Utica Shale in SE Ohio, including ~78,000 fee mineral acres

• First quarter average net equivalent production exceeding 2.0 bcfe/d

Strategic Minerals Portfolio

• Royalty interest in ~78,000 fee mineral acres (~90% operated; supporting drill -bit economics)

• Strategically targeted mineral position ensures focused development and enhances returns

• >116 mmcfe/d and annualized adjusted EBITDAX ~$50mm per year (3)

Top-Tier Risk Management

and Financial Discipline

• Maintain fully optimized firm transport with access to high-value end markets

• Substantial hedge book supports realizations through 2024

• LTM Leverage ratio approximately 2.4x and long-term target of less than 2.0x

• Decreased near-term maturities at discount (principal of maturities through YE2022 under $1.0 billion)

Leader in Environmental

and Social Stewardship

with Balanced Governance

• Top-tier health and safety culture with leading results for both employees and contractors

• Peer leading air quality controls and emissions(4)

• Limited operational impact from COVID-19 and to date no employees have tested positive

Experienced

Management Team

• Executives average more than 35 years of experience in the industry

• Leaders in sustainable shale developments spanning the onshore U.S.

• Pioneers in the discovery and development of the Utica play

1) FCF estimates based on STRIP pricing as of April 21, 2020.

2) Returns show n at long-term prices of $35/bbl WTI and $2.35/mmbtu Henry Hub.

3) Based on 1Q20 actual results.

4) Peers include AR, CNX, COG, EQT, GPOR, MR, RRC and SWN.


Ascent’s Utica Position Overview

1Q20 Highlights

1) Based on average D&C cost of $600-$650/lateral foot, inclusive of facilities and production costs excluding GP&T.

2) Per Ohio Department of Natural Resources (ODNR) and Natural Gas Supply Association (NGSA) data.

3) Excludes an additional ~6,000 of royalty only acres.

4) Liquidity defined as cash and availability under the secured credit facility as of 5/8/2020.

7

• Large scale contiguous acreage position in the multiphase,

overpressured, core of the Utica Shale in SE Ohio

• Deep inventory of economic development at current pace

(3 rigs) and pricing

• Lowest cost producer in Ohio Utica(1)

• FCF positive with over 2.0 bcfe/d average net production

• Largest producer of oil and natural gas in Ohio & 7th

largest producer of natural gas in the US(2)

Premier Utica Shale Pure-Play

• Adjusted EBITDAX of $247 million

• Second consecutive quarter with positive free cash flow

• Net production exceeded 2.0 bcfe/d

• Decreased overall leverage by nearly $100mm in principal

• Current liquidity of approximately $550 million(4)

Fee Mineral Acreage

Leasehold Acreage

Dry Gas

Liquids Rich

Top-Tier Position in Core of Utica ShaleNet Leasehold Acres: 277,000

Fee Mineral Acres(3): 72,000

Total Acreage: ~350,000


$700-$800

$600-$650

Updated 2020E GuidanceImproving Capital Allocation & Efficiencies

8

Capital Program Updates ($mm)

Key Drivers to Updated Guidance

Drilling Program Summary

Avg. Lateral Length ~13,000’

Avg. Cost / Lateral Foot <$650

Avg. EUR (bcfe) ~25

Avg. Working Interest 80%

Avg. Royalty Burden 16%

Half-Cycle IRR @

$35 WTI / $2.35 Henry Hub>50%

1-Year Cash Return @

$35 WTI / $2.35 Henry Hub(1) >80%

Capital

Adjustments

Land: 25% to 30%

D&C: 10% to 15%

D&C Capex Estimates Land Capex Estimates

Previous

Guidance

Updated

Guidance

• Decreased development costs by as much as 15% from the midpoint of prior guidance

• Improving return profile of development via efficiencies and improving long-term gas prices (>50% half cycle IRR v. ~40% prior guidance)

• Increased focus on dry gas development (now 85% of 2020E spuds vs 75% previous guidance)

• Reduced land capital by 25% - 30%

1) Based on first 12 months gross cash flows after last dollar spent to turn w ell in-line.


Updated 2020E D&C Cost Outlook ($/lateral foot)<$800

$80-$90$640-$660

$60-$70

Development Cost ImprovementsDriving Returns with Sustainable Efficiencies

9

Development Cost Improvement Highlights

• Drilling Efficiencies:

– Improved drilling cycle times due to equipment upgrades and technology advancements

– Decrease in non-productive time and rig move cycle times

– Deep top-hole rig upgrades

• Completions Efficiencies:

– Increased frac stages per day by >15%

– Reduction in drill-out and facility construction cycle times by >25% through optimization

– Realized savings from equipment reclamation programs

• Recent vendor pricing impact of 8% - 10% well cost reduction

Previous

Guidance

Achieved

EfficienciesService

CostsUpdated

Guidance


Diversified Marketing and Transportation Portfolio

10

Fully-Pathed Gas Transportation Commitments

Gulf

Coast~0.8 bcf/d

Midwest~0.8 bcf/d

TCO Pool

& Local~0.4 bcf/d

Chicago

MichConDawn

Rover/ REX-Z3

ARU Acreage

• Firm transportation commitments of ~2.0 bcf/d (gross

marketed volumes of ~2.5 bcf/d) with access to multiple

physical and financial markets with premium pricing,

including Gulf Coast LNG

• Optimized firm transportation providing opportunities for

the sale of excess gas to attractive in-basin markets,

lowering Ascent’s per unit cost of transportation

• Existing third-party gathering and processing

infrastructure supports development plan execution

• Temporarily curtailed 5%-10% of net production due to

dislocation in crude oil/condensate markets

1) Estimated basis differential based on pricing as of 4/3/2020; actual and estimated figures prior to the effect of hedges.

2019A(1) 2020E(1)

MarketBasis

Differential% of Gas

SoldBasis

Differential% of Gas

Sold

Midw est $(0.19) 38% $(0.16) 35%

Gulf Coast $(0.21) 37% $(0.13) 34%

TCO Pool $(0.35) 14% $(0.34) 14%

In-basin $(0.47) 11% $(0.46) 17%

Wtd. avg. differential $(0.25) 100% $(0.23) 100%

BTU uplift $0.15 $0.12

Differential to NYMEX $(0.10) $(0.11)

2020E realized price projected to yield ~94% of NYMEX(1)

Producing Above FT

LNG

Export~0.35 bcf/d


Financial Strategy to Deliver Long-Term Value Creation

Maximize capital efficiencies and allocate capital to lowest risk, highest rate of return assets

• Contiguous acreage position and royalty interests provide efficient high-margin development

• Optionality to shift, add, or reduce activity between liquids-rich and dry gas to best capture value

• Maintain resource quality and low supply costs

Proactive liability management and balance sheet improvement

• Improve leverage profile despite commodity price volatility

• Long-term leverage target of <2.0x

Commitment to maintaining a strong liquidity profile

• Target maintaining minimum of $500mm of liquidity

• Generating sustainable free cash flow at scale

• Reducing debt obligations with liquidity and free cash flow

Comprehensive hedging program proactively mitigates commodity price risk

• Substantial hedge portfolio through 2024

• Target hedging in excess of 80% of our projected natural gas and oil production volumes on a rolling 12 month basis, 50-

60% of forward production on a rolling 13 to 24 month basis, and 30-50% on a rolling 25 to 36 month basis

11


Active Hedging Program Provides Cash Flow Certainty

Note: As of 4/30/20; hedge volume and price reflects downside protection in the graphs

12

Hedging Update – Natural Gas and Oil

Natural Gas Hedged• 90% (11% calls) of Bal20• 85% (15% calls) of Cal21• 62% (14% calls) of Cal22• 33% (13% calls) of Cal23• 21% (15% calls) of Cal24

Oil Hedged• 88% (34% calls) of Cal20

• 98% (40% calls) of Cal21

$2.63

$2.55

$2.51

$2.45 $2.46

$2.32

$2.76

$2.53

$2.43 $2.40

$2.00

$2.10

$2.20

$2.30

$2.40

$2.50

$2.60

$2.70

$2.80

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Bal20 Cal21 Cal22 Cal23 Cal24

$/m

mbtumm

btu

/d

Natural Gas Swaps Natural Gas Collars

Natural Gas 3-Way Collars Wtd. Avg. Hedged Price

NYMEX Henry Hub

$44.81 $49.17

$25.38

$33.51

$0

$10

$20

$30

$40

$50

$60

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Bal20 Cal21

$/b

bl

bbl/day

Oil Swaps Oil 3-Way Col lars

Oil Collars Wtd. Avg. Hedged Price

NYMEX WTI


2020 - 2023 2024 and beyond

Current Capital Structure

• <$1.0 billion of principal debt due before 2024

– Utilizing free cash flow to de-lever

• $1.85bn(1) fully committed borrowing base

– Current liquidity: ~$550 mm(1)

• Targeting long-term leverage <2.0x

– Q1 Net Debt / LTM Adj. EBITDAX: 2.4x

Current Debt Maturity Profile

Capitalization and Liquidity

($ in millions) 12/31/2019 Δ 3/31/2020

Revolving Credit Facility balance $1,188 ($35) $1,153

Current & Long-term debt 1,652 (58) 1,594

Total debt $2,840 ($93) $2,747

( - ) Cash and cash equivalents (7) (6) (13)

Total net debt $2,833 ($99) $2,734

LTM Adj. EBITDAX $1,151 ($14) $1,137

Net debt / LTM Adj. EBITDAX 2.5x (0.1)x 2.4x

Liquidity Summary

RCF borrowing base $2,000 ($150) $1,850(1)

( - ) Drawn amount (1,188) (35) (1,153)

( - ) LC’s outstanding (171) (8) (163)

Revolving Credit Facility availability $641 ($107) $534

( + ) Cash 7 6 13

Total liquidity $648 ($101) $547

13

1) As of 5/8/2020.

2) Includes principal amount of 2021 Convertible Notes and 2022 Senior Notes.

3) Includes utilized Credit Facility and 2026 Senior Notes.

$1.75bn(3)

$547mm

Current Maturity Profile does not reflect potential paydowns from free cash flow generation

$994mm(2)

$163mm

Debt Outstanding

RBL Availability(1)

Letters of Credit

2021-2023

Credit Highlights


➢ Zero notice of violations (“NOV”) or reportable spills

➢ Best-in-class GHG and methane

emissions results

➢ Extensive Leak Detection and Repair

Program (LDAR) monitoring 1.3 million individual components in 2019

➢ Comprehensive storm water program with

approximately 5,700 storm water tests

conducted

➢ Member of ONE Future coalition – natural gas companies working to lower methane

emissions from the natural gas supply

chain to 1% by 2025

Ascent is Setting the Course for a Sustainable Future2019 ESG Report Highlights

14

Environmental

Integrity First – Safety Always

➢ Actively supporting the communities where we operate via active engagement

with regulatory bodies, charitable

organizations and emergency first

responders

➢ Over 3,200 volunteer hours made available annually to employees for

community service

➢ Great Place to Work™ certified for the

past four years

Social➢ 12 member Board of Managers

(representing >75% of equity ownership)

➢ 2 independent Managers

➢ Audit Committee with independent

chairperson

➢ Progressive gender representation in key leadership roles

Governance

➢ Our core belief is that all accidents and incidents are preventable

➢ Ascent is committed to a comprehensive safety and environmental program with active participation throughout all

levels of management, employees, and contractors

➢ Work place safety, loss prevention, and accountability are thoroughly integrated into all aspects of our company

➢ Peer leading safety results (<0.3 employee TRIR per 100 employees)

Corporate Responsibility Report Location: www.ascentresources.com/investors


Taking Action to Protect Employees

and Communities During the Pandemic

• Ascent quickly activated a response team to implement measures which safeguarded the

health of our employees, contractors and communities where we operate

• Initiated CDC guidelines for remote work and operating critical infrastructure

• Implemented and maintained appropriate social distancing, work-from-home and field

safety measures since early March 2020

• Limited operational impacts due to COVID-19

• Response team coordinated the donation of personal protective equipment (PPE) supplies

to local first responders in Ohio

• Ascent remains prepared and capable of handling any subsequent impacts thanks to the

advanced planning of our teams

15

Ascent’s COVID-19 Response and Results To-Date


Ascent Delivers the Best from the Best

16

• Continue basin-leading execution

• Generate Free cash flow year-after-year

• Lower growth in current commodity price environment

• Protect financial outlook via strong hedge book

• Lead industry in environmental and social responsibility

Ascent’s Key Strategies:

• Ascent controls core-of-the-core Utica Shale in SE Ohio

• Delivers best-in-class execution and margins

• Deep inventory of locations capable of contributing to

sustainable free cash flow generation at current prices

Ascent Combines Results with Resource:


First Quarter 2020 Results (Unaudited)

18

Results 1Q20 Actuals

Production

Natural Gas (mmcf/d) 1,712

NGL (mbbls/d) 36

Oil (mbbls/d) 14

Total (mmcfe/d) 2,009

Operating Expenses ($/mcfe)

LOE $0.11

GP&T $1.27

Production & Ad Valorem Taxes $0.05

G&A $0.08

Total Expenses $1.51

Adj. EBITDAX ($mm) $247

CAPEX ($mm)

Drilling & Completions $195

Other $24

Total CAPEX(1) $219

Operations

Operated Rigs 4

Wells Spud 19

Wells Completed 33

Wells TIL’d 22

Average Lateral Length of Wells TIL’d 12,433’

1) Excludes capitalized interest.


Revised 2020 Annual Guidance

19

Annual GuidancePrior

2020E Guidance Δ

Current

2020 Guidance

Total Production (mmcfe/d) >2,000 – >2,000

Operating Expenses ($/mcfe) $1.40 - $1.45 – $1.40 – $1.45

CAPEX ($mm)(1) $700 - $800 ($100 – $150) $600 – $650

Operations

Operated Rigs 4 0.5 3 – 4

Wells Spud 60 – 70 (5 – 10) 55 – 60

Wells Completed 65 – 75 – 65 – 75

Wells TIL’d 65 – 75 – 65 – 75

Average Lateral Length of TILs 13,000’ – 14,000’ – ~13,000’

1) Excludes capitalized interest and any potential divestitures.


Ascent Strategic Foundation

• Pure-play investment thesis focused on the

best rock in the prolific Utica Shale

• Scale in order to capture efficiencies

• Technical and operational expertise with

execution at highest levels

• Deliver outsized risk-adjusted returns to our

investors with sustainable production growth

21

Our strategy is more relevant today than it was at our foundation

AND FREE CASH FLOW


Name Years in Industry Experience

Jeffrey A. Fisher – Chairman and Chief Executive Officer• Former Executive Vice President of Operations at Chesapeake Energy

• Served in various operational and leadership roles at BP, Vastar Resources, and Arco Oil and Gas Company

37

Jennifer M. Grigsby – EVP – Chief Financial Officer• Former Senior Vice President, Corporate and Strategic Planning and Senior Vice

President, Treasurer and Corporate Secretary at Chesapeake Energy• Previously served in various accounting roles for Deloitte & Touche LLP and Commander

Aircraft Company

29

Keith E. Yankowsky – EVP – Chief Operating Officer• Former Executive Vice President and COO of Magnum Hunter Resources

• Served a variety of leadership roles including most recently Senior Vice President –Appalachia South at Chesapeake Energy

35

Robert W. Kelly II – SVP – General Counsel and Secretary• Former Senior Vice President & General Counsel at Chaparral Energy, LLC

• Served in multiple legal and land roles including Division Land Manager at EOG Resources and District Land Manager at TXO Production Corporation

40

James C. Johnson – SVP – Midstream and Marketing• Former Senior Vice President – Marketing at Chesapeake Energy and President of

Chesapeake Energy Marketing • Served in multiple land and commercial roles at Enogex, Inc., Delhi Gas Pipeline

Corporation, Texas Oil & Gas Corporation, and Gulf Oil Corporation

41

Highly Experienced Leadership Team

22

http://www.marathonoil.com/

http://www.marathonoil.com/

http://en.wikipedia.org/wiki/File:ARCO.svg


-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0 500 1,000 1,500 2,000 2,500 3,000

Avera

ge D

aily

Gro

ss P

roductio

n (

bcfe

/d)

Well Count

Execution and Great Rock Deliver Great Results

23

Source: Wood Mackenzie North American Well Analysis tool (2018)

Note: 3 month daily average or production and w ell count; production is plotted to peak production

Note: production includes acquired w ells

Peer1Marcellus432 wells


Peer5Fayetteville3,135 wells



Ascent

Utica

~260 wells

• Ascent achieved gross operated production of 1 bcfe/d with just 151 operated wells

• Surpassed 2 bcfe/d with only 257 wells


Ascent’s Acreage Contains Great RockSouthern Utica Shale Reservoir Compares Favorably to Other Shale Plays

Source: Ascent Resources, ITG, Core Lab, WFT Labs, AAPG, ARI, MS Research, DrillingInfo, Halliburton, BHI, EIA, EOG, RRC, SWN, USGS, DOE, ODNR, DCNR, O&G Financial Journal,

Oil and Gas Investor, UT, HK, UBS, and BHP

24

Time →

Ra

te → > 25+ mmcf/day

Time →

Ra

te → > 10 mmcf/day

| Frac Area →| |Frac Area|

L. Utica

(productive interval)

Northern Area

Pe

rfo

rmance

Co

mp

leti

on

Southern Area

Lower Vclay

(poor frac barrier)

Higher Vclay

(good frac barrier)U. Utica

(top seal)

• Excellent top seal allows for

reservoir pressures that are

2X normal pressure

• Top and bottom frac barriers and

favorable mineralogy results in

greater stimulated rock volume

• High effective porosities and

ultra low water saturations

illustrate improved hydrocarbons

in place

• Minimal produced water drives

lower per unit operating costs

• Continuous, consistent geology

allows for longer laterals,

optimized targeting and

enhanced completion efficiency


Q4 2019 Top 40 Utica Gas Wells

25

Ascent operates 23 of the top 40 gas producers in the quarter

Source: ODNR data; daily average w ith 7-day minimum

Note: Oil w as recombined to an equivalent gas rate at a ratio of 20:1 bbls/Mcf

RANK WELL NAME OPERATOR COUNTY TOWNSHIP PRODUCING DAYS DAILY OIL (BOPD) DAILY GAS (MCFD) DAILY EQUIV (MCFED) YIELD (BBL/MMCF) Lateral Length

1 FORNI 3 UH MONTAGE MONROE BENTON 26 0 40,910 40,910 0 10,177

2 FORNI 4 UH MONTAGE MONROE BENTON 26 0 40,292 40,292 0 8,943

3 DARROW W MTP JF 1H ASCENT RESOURCES UTICA LLC JEFFERSON MT. PLEASANT 92 0 35,151 35,151 0 15,865

4 FANKHAUSER 210035 2A GULFPORT BELMONT WASHINGTON 92 0 33,570 33,570 0 15,534

5 FANKHAUSER 210035 3B GULFPORT BELMONT WASHINGTON 92 0 33,563 33,563 0 13,679

6 DARROW S MTP JF 2H ASCENT RESOURCES UTICA LLC JEFFERSON MT. PLEASANT 92 0 33,092 33,092 0 15,776

7 BRAVO SE ATH HR 6H ASCENT RESOURCES UTICA LLC HARRISON ATHENS 88 39 33,047 33,825 1 14,085

8 DARROW E MTP JF 3H ASCENT RESOURCES UTICA LLC JEFFERSON MT. PLEASANT 92 0 32,807 32,807 0 15,386

9 FANKHAUSER 210735 4A GULFPORT BELMONT WASHINGTON 92 0 32,535 32,535 0 11,798

10 BRAVO SW ATH HR 2H ASCENT RESOURCES UTICA LLC HARRISON ATHENS 88 61 31,711 32,924 2 14,321

11 DORNON 210642 4B GULFPORT BELMONT SMITH 92 0 30,897 30,897 0 13,493

12 BRAVO S ATH HR 4H ASCENT RESOURCES UTICA LLC HARRISON ATHENS 88 45 30,785 31,691 1 14,546

13 LANCE 210967 7A GULFPORT BELMONT PEASE 184 0 30,408 30,408 0 11,311

14 GRISWOLD SW WYN JF 2H ASCENT RESOURCES UTICA LLC JEFFERSON WAYNE 92 0 30,127 30,127 0 16,447

15 DORNON 210033 2B GULFPORT BELMONT SMITH 92 0 29,368 29,368 0 12,888

16 BUDDY SMF JF 5H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 92 0 29,090 29,090 0 13,101

17 BUDDY SMF JF 7H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 92 0 28,879 28,879 0 12,825

18 DORNON 210642 3A GULFPORT BELMONT SMITH 92 0 28,647 28,647 0 13,620

19 FALDOWSKI SE SMF JF 6H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 92 0 28,616 28,616 0 10,671

20 DARROW S MTP JF 4H ASCENT RESOURCES UTICA LLC JEFFERSON MT. PLEASANT 92 0 28,366 28,366 0 13,539

21 GRISWOLD S WYN JF 4H ASCENT RESOURCES UTICA LLC JEFFERSON WAYNE 92 0 28,357 28,357 0 15,253

22 DORNON 210033 1A GULFPORT BELMONT SMITH 92 0 28,320 28,320 0 13,128

23 ROTH E 10H MONTAGE MONROE GREEN 92 0 28,046 28,046 0 20,257

24 ROXY NE CRC JF 5H ASCENT RESOURCES UTICA LLC JEFFERSON CROSS CREEK 82 0 27,767 27,767 0 11,552

25 BANNOCK UNN BL 4H ASCENT RESOURCES UTICA LLC BELMONT UNION 92 0 27,554 27,554 0 7,582

26 ROTH D 8H MONTAGE MONROE GREEN 92 0 26,779 26,779 0 20,412

27 RAZIN KANE 5 EQT BELMONT GOSHEN 92 0 26,068 26,068 0 15,633

28 GENO E SMF JF 5H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 91 0 25,624 25,624 0 14,279

29 RONALD NE SMF JF 1H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 74 0 25,274 25,274 0 12,317

30 CENA WYN JF 2H ASCENT RESOURCES UTICA LLC JEFFERSON WAYNE 92 0 24,993 24,993 0 14,400

31 RAZIN KANE 3 EQT BELMONT GOSHEN 92 0 24,179 24,179 0 16,647

32 ROTH C 6H MONTAGE MONROE GREEN 92 0 24,147 24,147 0 15,980

33 ROXY CRC JF 1H ASCENT RESOURCES UTICA LLC JEFFERSON CROSS CREEK 82 0 23,879 23,879 0 10,829

34 ROXY N CRC JF 3H ASCENT RESOURCES UTICA LLC JEFFERSON CROSS CREEK 82 0 23,734 23,734 0 11,425

35 LORI SE SMF JF 8H ASCENT RESOURCES UTICA LLC JEFFERSON SMITHFIELD 85 0 23,328 23,328 0 11,038

36 CLUB SE SMF JF 9H ASCENT RESOURCES UTICA LLC JEFFERSON MT. PLEASANT 92 0 23,305 23,305 0 14,984

37 PYLES B 4H MONTAGE MONROE ADAMS 91 0 23,302 23,302 0 11,871

38 ROTH B 4H MONTAGE MONROE GREEN 92 0 23,132 23,132 0 19,739

39 CREAMER WRN JF 2H ASCENT RESOURCES UTICA LLC JEFFERSON WARREN 91 0 23,106 23,106 0 8,750

40 CROWIE E RCH BL 3H ASCENT RESOURCES UTICA LLC BELMONT RICHLAND 59 0 23,074 23,074 0 11,315


Q4 2019 Top 40 Utica Oil Wells

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Ascent operates 21 of the top 40 oil producers in the quarter

Source: ODNR data; daily average w ith 7-day minimum

Note: Oil w as recombined to an equivalent gas rate at a ratio of 20:1 bbls/Mcf

RANK WELL NAME OPERATOR COUNTY TOWNSHIP PRODUCING DAYS DAILY OIL (BOPD) DAILY GAS (MCFD) DAILY EQUIV (MCFED) YIELD (BBL/MMCF) Lateral Length

1 FINERAN B 7H MONTAGE GUERNSEY WILLS 90 1,418 3,484 31,848 407 16,778

2 FINERAN B 5H MONTAGE GUERNSEY WILLS 90 1,352 3,387 30,427 399 16,755

3 FINERAN A 3H MONTAGE GUERNSEY WILLS 90 1,297 3,313 29,259 392 17,080

4 FINERAN A 1H MONTAGE GUERNSEY WILLS 90 1,293 3,169 29,022 408 17,116

5 KRAMER 1-13-7 10H ENCINO HARRISON FRANKLIN 85 1,179 4,674 28,254 252 16,808

6 AKERS 25-12-6 210H ENCINO HARRISON FRANKLIN 61 1,066 2,314 23,638 461 11,825

7 AKERS 25-12-6 10H ENCINO HARRISON FRANKLIN 61 949 2,118 21,103 448 10,171

8 GINGERICH S LND GR 6H ASCENT RESOURCES UTICA LLC GUERNSEY LONDONDERRY 65 877 4,025 21,566 218 12,441

9 KRAMER 1-13-7 6H ENCINO HARRISON FRANKLIN 85 857 3,186 20,335 269 7,749

10 WATSON W ML GR 5H ASCENT RESOURCES UTICA LLC GUERNSEY MILLWOOD 92 851 4,772 21,788 178 10,805

11 RED HILL FARM SE MDS GR 10H ASCENT RESOURCES UTICA LLC GUERNSEY MADISON 92 845 3,011 19,904 281 12,784


13 RED HILL FARM SW MDS GR 4H ASCENT RESOURCES UTICA LLC GUERNSEY MADISON 92 756 2,975 18,090 254 13,477

14 BOWERSTON N 21-13-6 1H ENCINO HARRISON MONROE 61 755 2,131 17,228 354 9,258



17 TARPLEY OXF GR 1H ASCENT RESOURCES UTICA LLC GUERNSEY OXFORD 13 699 2,931 16,919 239 12,806


19 KRAMER 1-13-7 206H ENCINO HARRISON FRANKLIN 85 671 2,750 16,169 244 14,959

20 WATSON W MLW GR 1H ASCENT RESOURCES UTICA LLC GUERNSEY MILLWOOD 92 668 3,822 17,184 175 11,243

21 BOWERSTON N 21-13-6 3H ENCINO HARRISON MONROE 61 658 2,247 15,399 293 8,985



24 JUPITER B UNIT 3H MONTAGE GUERNSEY MILLWOOD 90 647 3,738 16,687 173 18,763

25 RUTLEDGE 10-14-6 3H ENCINO CARROLL UNION 92 647 3,382 16,316 191 7,844

26 RUTLEDGE 10-14-6 4H ENCINO CARROLL UNION 92 641 3,305 16,116 194 7,958

27 GILCHER S LND GR 2H ASCENT RESOURCES UTICA LLC GUERNSEY LONDONDERRY 29 627 3,157 15,698 199 10,947

28 MILLER FARMS E WSG GR 8H ASCENT RESOURCES UTICA LLC GUERNSEY WASHINGTON 92 622 2,045 14,482 304 11,631

29 ALBERT W KKW BL 2H ASCENT RESOURCES UTICA LLC BELMONT KIRKWOOD 90 620 16,883 29,283 37 15,350

30 BLACK RACER W LND GR 3H ASCENT RESOURCES UTICA LLC GUERNSEY LONDONDERRY 73 619 2,594 14,980 239 12,801

31 DYNAMITE 7H UTICA RESOURCE OPERATING LLC GUERNSEY RICHLAND 184 616 2,527 14,846 244 12,198

32 ALBERT SW KKW BL 4H ASCENT RESOURCES UTICA LLC BELMONT KIRKWOOD 90 613 17,322 29,583 35 15,751

33 DYNAMITE 8H UTICA RESOURCE OPERATING LLC GUERNSEY RICHLAND 184 613 2,565 14,820 239 9,227

34 ALBERT S KKW BL 6H ASCENT RESOURCES UTICA LLC BELMONT KIRKWOOD 90 602 17,162 29,209 35 16,401

35 BOYD HALL A 3H MONTAGE BELMONT KIRKWOOD 90 599 6,208 18,179 96 13,574

36 SHERWOOD E MRF HR 9H ASCENT RESOURCES UTICA LLC HARRISON MOOREFIELD 92 584 9,312 20,983 63 13,867

37 MILLER FARMS E WSG GR 6H ASCENT RESOURCES UTICA LLC GUERNSEY WASHINGTON 91 580 1,955 13,553 297 11,241

38 ALBERT E KKW BL 10H ASCENT RESOURCES UTICA LLC BELMONT KIRKWOOD 90 541 16,743 27,564 32 16,851

39 DAVIS TRUST 19-11-5 3H ENCINO HARRISON ARCHER 92 540 11,950 22,741 45 13,893

40 DAVIS TRUST 19-11-5 1H ENCINO HARRISON ARCHER 92 539 10,992 21,773 49 14,190


Leading by Example When it Comes to ESGCommitment to Corporate Responsibility

Integrity First – Safety Always

o Employee Safety – Only two recordable incidents and zero fatalities in 5½ years

o Contractor Safety – Strict protocols in place and continuous training

Environmental Stewardship & Operational Excellence

o Managing Emissions – Member of ONE Future coalition

o Leak Detection and Repair (LDAR) – Leak rate <0.2% on >1mm components

o Protecting the Land – No leases on federal lands

o Water Conservation – Reused 68% of total produced water

Sound Corporate Governance

o Board Structure – 9 investor members / 2 independent / 1 officer

o Code of Business Conduct and Ethics – All employees complete annual training on ethics and workplace harassment

o Enterprise Risk Management (ERM) – Cross departmental committee tasked with identifying and monitoring risks across company

o Cybersecurity – Adopted National Institute of Standards and Technology (NIST) framework

Bringing Energy to our Workforce and Community

o Employee Relations – “Great Place to Work” certified 4 years in a row

o Corporate Giving – Committed to supporting national, Oklahoma and Ohio charitable organizations

o Volunteer Efforts – All employees given 8 hrs of PTO to volunteer in communities (>3,200 volunteer hours per year)

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Full ESG Report Available at:www.ascentresources.com/investors

February 24, 2020€¦ · presentation at any subsequent time shall not under any circumstances...

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