Ascent Resources, LLC announced it entered into a Purchase and Sale Agreement with an undisclosed seller to acquire all of its assets in the Utica Shale in Ohio for a total purchase price of $270 million, subject to customary closing purchase price adjustments. Ascent will fund the transaction with a combination of cash on hand and borrowings under its revolving credit facility. The Company also entered into an amended and restated credit agreement with a syndicate of banks to extend the maturity of the credit facility to June 2027, while increasing the borrowing base and elected commitment amount to $3.0 billion and $2.0 billion, respectively. The Credit Facility will be governed by the lessor of the borrowing base and the elected commitment amount.

The acquisition expands Ascent's asset base in the Ohio Utica Shale play by 26,800 net acres and increases net production by approximately 60 mmcfe/d. The Company already holds working interests in a material portion of the acquired production and, as such, is familiar with the acquired acreage. In addition, the acquisition comes with a substantial inventory of identified drilling locations in both the Utica and Marcellus which we expect to add high margin cash flow in the future. The acquisition requires no incremental overhead or external financing and is immediately accretive to Adjusted Free Cash Flow and corporate returns. Consistent with past practice, the Company has hedged a significant portion of the expected production from the asset to capture the strong economics and returns offered in the current market.

"We are excited to announce these strategic transactions as they highlight both our operational and financial execution,” says Jeff Fisher, Ascent's chairman and CEO. “Through the acquisition we have added high-quality acreage and production in the core of the Utica Shale at an attractive valuation, while also picking up prospective locations in the Marcellus.